Self Assessment Late Payment Penalties
At the end of last week, HMRC announced that Self Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1 April.
The payment deadline for Self Assessment is 31 January and interest will be charged from 1 February on any amounts outstanding. The deadline has not changed, but this year, because of the impact of COVID 19, HMRC is giving taxpayers more time to pay or set up a payment plan.
Payment plans or payments in full must be in place by midnight on 1 April to avoid a late payment penalty.
Anyone worried about paying their tax should contact HMRC for help and support on 0300 200 3822.
The self-serve Time to Pay facility allows taxpayers to spread the cost of their tax liabilities into monthly instalments until January 2022. Taxpayers can set up a payment plan online, on GOV.UK.
Self Assessment taxpayers who have yet to file their tax return should do so by 28 February to avoid a late filing penalty.